What Is Adverse Selection? Adverse selection refers generally to a situation in which sellers have information that buyers do not have, or vice versa, about some aspect of product quality. In other words, it is a case where asymmetric information is exploited. Asymmetric information, also called information failure, happens when one party to a transaction has
What Is an Advertised Price? An advertised price is the price of a product or service as displayed or announced in a print, radio, television, or online advertisement. If the advertised price is well below the normal price of a product, it is likely to be a loss-leader that is priced to entice customers into
What Is an Advertising Allowance? An advertising allowance is money that a product manufacturer or service provider pays to a retailer to get the word out about their product. An advertising allowance may also take the form of a supplier or manufacturer giving a discount on inventory provided to a wholesaler or retailer to pay for advertising
What Is Advertising Elasticity of Demand (AED)? Advertising elasticity of demand (AED) measures a market’s sensitivity to increases or decreases in advertising saturation. Advertising elasticity measures an advertising campaign’s effectiveness in generating new sales. It is calculated by dividing the percentage change in the quantity demanded by the percentage change in advertising expenditures. A positive
What Is the Advertising-To-Sales Ratio? The advertising-to-sales ratio, also known as the “A to S,” is a measurement of the effectiveness of a company’s advertising campaign. It can be used to measure the effectiveness of a specific product launch or of a broader policy, rebranding, or new direction in business. Key Takeaways The advertising-to-sales ratio
What Is an Advisor? An advisor is any person or company involved in providing financial advice for payment. Advisors may advise people about investing and investments. Or they may actually invest capital for investors. Registered investment advisors (RIA) and investment advisory companies (IAC) are two registered entities that investors look to for investment management. They’re
What Is an Advisor Account? An advisor account is a type of investment account where investment advisory services are included to help a client formulate and implement investment purchases and strategies. With the growth of robo advisory services, advisor accounts can include multiple levels of service and advice. Many platforms also provide a mix of
What Is an Advisor Fee? An advisor fee is a fee paid for professional advisory services on matters related to money, finances, and investments. It can be charged as a percentage of total assets or it may be associated with a broker-dealer transaction in the form of a commission. Key Takeaways Advisor fees are paid
What Is Advisory Management? The term advisory management refers to the provision of professional, personalized investment guidance. Advisory management services allow private individuals to consult with investment professionals before making changes to their portfolios. Advisory management professionals have expertise in one or more investment areas and provide guidance that is tailored to an individual’s specific
What Is Adweek? Adweek is a U.S.-based weekly trade publication covering the business of advertising. In its print and online publications, it covers a wide range of advertising-related topics that extend beyond traditional advertising to new media and pop culture. First published in 1979, Adweek is currently owned by investment company Shamrock Capital, which bought it from
